Guyana compressor to be fixed in 3 months: ExxonMobil

ExxonMobil says it is progressively restoring crude production at the deepwater Stabroek block off Guyana to 110,000 b/d as it works to repair faulty equipment within three months.

In early April, a recurring technical problem at a recently repaired and re-installed gas compressor slashed output at the Liza Destiny floating production, storage and offloading unit (FPSO) to 30,000 b/d – a quarter the unit's nameplate capacity. The reduction has also triggered more gas flaring.

The US major said it was "extremely disappointed by these ongoing technical challenges."

The government said on 15 April it is "highly disappointed" that ExxonMobil has been unable to rectify recurring problems, and "... is examining the implications of the loss of output, and consequently loss of income and revenue."

This month's sharp reduction was the third caused by technical problems since the company started production in December 2019. The issue first arose last year, suppressing production to a low of 27,500 b/d in June, and impeded the FPSO from reaching a 120,000 b/d target until December, nine months behind schedule.

"We will continue to work with the relevant parties to rectify the situation as soon as possible," ExxonMobil said. The compression equipment manufacturer is MAN Energy Solutions and the FPSO operator is SBM Offshore.

ExxonMobil has a 45pc stake in Stabroek. US independent Hess holds 30pc and Chinese state-owned CNOOC unit Nexen has 25pc.

Early mover gets moving

CGX Energy, one of the early movers in Guyana's offshore acreage, has contracted a Maersk Drilling rig to spud the Kawa-1 well on the Corentyne block early in the third quarter, CGX and its fellow Canadian joint venture partner Frontera Energy said.

CGX has a 66.6pc operating stake in the block, with Frontera holding the remaining interest.

By Canute James